Shares in Hong Kong's Chow Tai Fook Jewellery Group jumped as much as 16 percent on Wednesday after the world's largest jewelry retailer by market value reported strong revenue growth due to plummeting gold prices.
In a statement to the Hong Kong Stock exchange late on Tuesday, the group reported a 63 percent rise in revenue in the first quarter of the financial year from the same period in 2012. Sales of gold products from its own stores soared 78 percent in the quarter ended June 30.
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Gold posted a record quarterly fall from April-June, luring mainland Chinese buyers to Chow Tai Fook's almost 1,800 jewelry and gold stores across China, Hong Kong and Macau.
The stock ended 13 percent higher at HK$9.16 on Wednesday after rising as much as 16 percent, its biggest-ever daily percentage gain.
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Taking advantage of the higher prices, one institutional investor sold 9.39 million shares for between HK$8.4 and HK$8.7 per share, amounting to as much as HK$817 million ($105 million) total, according to a term sheet obtained by Reuters.
Analysts said cross-selling of non-gold jewelry and replenishment of orders from franchisees also drove up Chow Tai Fook's sales numbers.